Asia-Pacific markets experienced mixed trading as oil prices eased slightly following President Trump’s decision to postpone a planned strike on Iran. Japan’s economy showed robust growth in the first quarter, expanding at an annualized 2.1%, surpassing analyst expectations.
Despite the geopolitical reprieve, markets showed varied responses, with Japan’s Nikkei 225 dipping and South Korea’s Kospi falling significantly. Standard Chartered shares gained following an improved return target announcement.
Asia-Pacific markets traded with mixed sentiment on Tuesday, influenced by a slight easing in oil prices following news that U.S. President Donald Trump had postponed a planned strike on Iran. The development offered a measure of relief to investors already navigating geopolitical tensions in the Middle East.
International Brent crude futures for July delivery saw a decline of 2.04% to $109.81 per barrel, while West Texas Intermediate futures for June were down 1.12% at $107.44 per barrel. These price movements came after Trump announced on Truth Social that U.S. military leaders were instructed to call off a "scheduled attack of Iran tomorrow" following requests from leaders of Qatar, Saudi Arabia, and the United Arab Emirates.
Despite the eased oil prices, markets showed varied reactions. Investors were also closely watching Japan's first-quarter GDP data, which indicated that the economy grew at an annualized rate of 2.1%. This figure surpassed the Reuters-polled analysts' average estimate of 1.7% and was a notable increase from the previous quarter's 1.3%. However, these figures predate the full economic impact of the conflict involving Iran, which began in late February.
In Japan, the Nikkei 225 index reversed early gains, closing 0.45% lower, although the broader Topix index managed to add 0.54%. Attention also turned to an upcoming summit meeting between Japanese Prime Minister Sanae Takaichi and South Korean President Lee Jae Myung. South Korea's Kospi experienced significant losses, falling 3.12%, with the small-cap Kosdaq dropping 3.32%.
Australia's S&P/ASX 200 index, however, showed strength, rising 1.05%. Mainland China's CSI 300 index declined by 0.52%, while Hong Kong's Hang Seng index edged up by 0.41%.
Notable corporate news included Standard Chartered's Hong Kong-listed shares surging 2.54% after the bank announced an increased 2028 return target to 15% and plans to reduce corporate functions roles by 15% by 2030.
In India, the Nifty 50 index rose 0.44%. Shares of companies affiliated with Gautam Adani experienced a boost after the U.S. dropped fraud charges against the Indian billionaire. Adani Enterprises climbed 1.89%, while Adani Ports and Adani Green saw gains of 0.36% and 1.23%, respectively.
President Trump reiterated his stance that a deal would be made, emphasizing that it would include "NO NUCLEAR WEAPONS FOR IRAN." He cautioned, however, that military leaders remain prepared for a large-scale assault should an acceptable deal not materialize. Meanwhile, the Strait of Hormuz remains closed by Tehran, and the U.S. continues its blockade of Iranian ports, with Moody's noting little prospect for a swift resolution to the ongoing Middle East conflict.
Futures for the S&P 500 were up 0.1%, Nasdaq 100 futures rose 0.2%, and Dow Jones Industrial Average futures advanced 25 points, or 0.05%. This followed a mixed performance on Monday, where the S&P 500 dropped 0.07%, the Nasdaq slid 0.51%, and the Dow Jones Industrial Average closed up 0.32%.
